Flutter Entertainment (NYSE:FLUT) Shares Down 6.4% After Analyst Downgrade

Key Points

• Flutter Entertainment shares fell 6.4% after Wells Fargo cut its price target from $164 to $161 and reiterated an equal-weight rating.
• Several other analysts also lowered targets on FLUT recently, though the consensus rating remains Moderate Buy with an average price target of $194.23.
• The company recently reported better-than-expected quarterly results, including EPS of $1.22 versus $1.09 expected and revenue of $4.30 billion, while also authorizing a $250 million share buyback.

Flutter Entertainment PLC (NYSE:FLUT - Get Free Report)'s stock price traded down 6.4% during mid-day trading on Monday after Wells Fargo & Company lowered their price target on the stock from $164.00 to $161.00. Wells Fargo & Company currently has an equal weight rating on the stock. Flutter Entertainment traded as low as $95.94 and last traded at $94.6880. 848,425 shares traded hands during trading, a decline of 77% from the average session volume of 3,728,416 shares. The stock had previously closed at $101.19.

A number of other research analysts have also issued reports on FLUT. Stifel Nicolaus decreased their target price on shares of Flutter Entertainment from $216.00 to $189.00 and set a "buy" rating on the stock in a research report on Thursday, April 9th. Kepler Capital Markets lowered shares of Flutter Entertainment from a "strong-buy" rating to a "hold" rating in a research report on Monday, March 16th. Truist Financial decreased their target price on shares of Flutter Entertainment from $140.00 to $130.00 and set a "buy" rating on the stock in a research report on Thursday. Oppenheimer decreased their target price on shares of Flutter Entertainment from $210.00 to $160.00 and set an "outperform" rating on the stock in a research report on Monday, April 13th. Finally, BTIG Research decreased their target price on shares of Flutter Entertainment from $137.00 to $126.00 and set a "buy" rating on the stock in a research report on Thursday. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, seven have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $194.23.

Insider Buying and Selling

In related news, CEO Jeremy Peter Jackson sold 4,326 shares of the stock in a transaction that occurred on Wednesday, March 11th. The shares were sold at an average price of $108.00, for a total transaction of $467,208.00. Following the sale, the chief executive officer owned 36,788 shares in the company, valued at approximately $3,973,104. This trade represents a 10.52% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Robert Coldrake sold 4,613 shares of the stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $106.45, for a total transaction of $491,053.85. Following the sale, the chief financial officer owned 10,006 shares in the company, valued at $1,065,138.70. This represents a 31.55% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 17,834 shares of company stock worth $1,900,331. Corporate insiders own 0.09% of the company's stock.

Hedge Funds Weigh In On Flutter Entertainment

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. JFS Wealth Advisors LLC bought a new position in Flutter Entertainment in the 3rd quarter valued at approximately $27,000. MassMutual Private Wealth & Trust FSB lifted its stake in Flutter Entertainment by 219.4% in the 4th quarter. MassMutual Private Wealth & Trust FSB now owns 115 shares of the company's stock valued at $25,000 after purchasing an additional 79 shares during the last quarter. JCIC Asset Management Inc. bought a new position in Flutter Entertainment in the 3rd quarter valued at approximately $32,000. Zions Bancorporation National Association UT lifted its stake in Flutter Entertainment by 1,685.7% in the 4th quarter. Zions Bancorporation National Association UT now owns 125 shares of the company's stock valued at $27,000 after purchasing an additional 118 shares during the last quarter. Finally, Atlantic Union Bankshares Corp bought a new position in Flutter Entertainment in the 3rd quarter valued at approximately $34,000.

Flutter Entertainment Stock Performance

The firm has a market cap of $16.47 billion, a P/E ratio of -44.21, a P/E/G ratio of 0.84 and a beta of 1.58. The company has a debt-to-equity ratio of 1.27, a quick ratio of 0.90 and a current ratio of 0.90. The company's 50 day moving average is $107.52 and its 200 day moving average is $166.00.

Flutter Entertainment (NYSE:FLUT - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The company reported $1.22 EPS for the quarter, beating the consensus estimate of $1.09 by $0.13. The business had revenue of $4.30 billion during the quarter, compared to the consensus estimate of $4.24 billion. Flutter Entertainment had a negative net margin of 2.20% and a positive return on equity of 11.60%. The firm's revenue was up 17.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.59 EPS. As a group, equities analysts predict that Flutter Entertainment PLC will post 5.14 earnings per share for the current fiscal year.

Flutter Entertainment declared that its board has initiated a stock buyback plan on Wednesday, March 11th that allows the company to buyback $250.00 million in shares. This buyback authorization allows the company to reacquire up to 1.3% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its shares are undervalued.

Flutter Entertainment Company Profile

Flutter Entertainment plc is a global sports betting and gaming company that operates a portfolio of consumer-facing brands and digital platforms. The company's primary activities include online sports betting, casino gaming, poker, and daily fantasy sports, delivered through web and mobile applications as well as retail betting locations in select markets. Flutter focuses on product development, customer acquisition and engagement, and compliance with local gambling regulations across the jurisdictions where it operates.

Flutter's brand portfolio includes well-known names in different regional markets, such as FanDuel in the United States, PokerStars, Betfair, Paddy Power and Sky Betting & Gaming in Europe and elsewhere.

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